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STANDARD FORMS OF

JOINT VENTURE/CONSORTIUM AGRREMENTS


AND
MEMORANDUM OF UNDERSTANDING

(First Edition)

April, 2010

PAKISTAN ENGINEERING COUNCIL


ISLAMABAD

ACKNOWLEDGMENT

Pakistan Engineering Council extends deep appreciations and acknowledges the


tremendous contribution in developing and finalizing this document by the following
members of the Pakistan Engineering Council (PEC):
1.

Engr. M. Mazhar-ul Islam


(CEO, Techno Legal Consultants, Lahore)

Convenor

2.

Engr Shehryar Khan


(Joint Technology Adviser, Ministry of Science & Technology)

Member

3.

Engr M Shahid Rafiq


(Chairman, APCA, Islamabad)

Member

4.

Engr Sohail Ahmad Khawaja


(Director, MEPCO,WAPDA, Multan)

Member

5.

Engr Mahmood Ahmad Sulehri


(GM/Head, Contract Division, NESPAK, Lahore)

Member

6.

Engr Arif Kasam


(Honorary Secretary, ACEP, Karachi)

Member

7.

Engr Ayaz Mirza


(Deputy General manager, KESC, Karachi)

Member

8.

Engr. Arshad Mahmood


(Principal Engineer, NESPAK, Lahore)

Expert

9.

Engr. Mujahid Akbar


(Chief Engineering Analyst, PICC, Lahore)

Expert

PREFACE
Pakistan Engineering Council (PEC) being the Statutory Regulatory body, entrusted to
regulate the engineering profession in Pakistan has undertaken, inter alia, the
standardization of country specific documents to regulate and streamline the procurement
of engineering consultancy services and procurement of works. Standard Forms of Joint
Venture Agreement/Consortium Agreement/Memorandum of Understanding (MOU) is
one such document prepared by a team of experts drawn from the Employers,
Constructors and Consultants Organization in Pakistan. This document has been prepared
following the international practices, but conforming to the respective PEC Bye-Laws.
Any suggestions to improve this document are welcome which may please be addressed
to:
Registrar
Pakistan Engineering Council
Ataturk Avenue (East)
Sector G-5/2
Islamabad
Tel # 92-51-2276225
Fax # 92-51-2276224
E-mail: registrar @ pec.org.pk

TABLE OF CONTENTS

Description

Page No.

Joint Venture Agreement

Consortium Agreement

26

Memorandum of Understanding (General )

38

Memorandum of Understanding
(For Providing / Rendering Particular Engineering Services)

48

Declaration (Letter) of Association for Consultancy Services

58

Non-Disclosure Agreement

59

List of PEC Contract Documents

62

JOINT VENTURE AGREEMENT


CONDITIONS AND TERMS
[To be executed on Rs. --- stamp paper]
THIS JOINT VENTURE AGREEMENT (hereinafter called the Agreement) made
and entered into this . day of the month of . 2010 by and
among:
A.

PRINCIPAL MEMBERS (local and foreign) comprising:

1.

[Name and address of the Leading Local Member firm] (hereinafter


called [Short Name or Acronym]), which expression shall include its
successors, legal representatives and permitted assigns, who for the
purpose of this Agreement shall hereinafter called Leading Member;

2.

[Name and address of the Member firm] (hereinafter called the [Short
Name or Acronym]), which expression shall include its successors, legal
representatives and permitted assigns, who for the purpose of this
Agreement shall hereinafter called Principal Local Member;

3.

[Name and address of the Member firm] (hereinafter called the [Short
Name or Acronym]), which expression shall include its successors, legal
representatives and permitted assigns, who for the purpose of this
Agreement shall hereinafter called Principal Foreign Member; and

4.

[Name and address of the Member firm] (hereinafter called the [Short
Name or Acronym]), which expression shall include its successors, legal
representatives and permitted assigns, who for the purpose of this
Agreement shall hereinafter called Principal Foreign Member.

B.

ASSOCIATE MEMBERS (local and foreign):

1.

[Name and address of the Member firm] (hereinafter called the [Short
Name or Acronym]), which expression shall include its successors, legal
representatives and permitted assigns, who for the purpose of this
Agreement shall hereinafter called Associate Member.

2.

[Name and address of the Member firm] (hereinafter called the [Short
Name or Acronym]), which expression shall include its successors, legal
representatives and permitted assigns, who for the purpose of this
Agreement shall hereinafter called Associate Member.

(all the above local and foreign members for the purpose of this
Agreement hereinafter individually called the Member and collectively
called the Members)
WHEREAS
(a)

the Client (as defined hereunder) intends to appoint /has appointed the
Consultants for providing engineering services; hereinafter called the
Services for [Name/Title of the Project]; hereinafter called the Project;
and

(b)

the Members have agreed to join hands in the form of a Joint Venture to
provide the said professional engineering services.
(Note: In case Services up to acceptance of Proposal by the Client are
separately covered under Memorandum of Understanding (MOU), then
the above text be modified accordingly)

NOW THEREFORE, the Members have agreed as follows:


1.

DEFINITIONS AND INTERPRETATIONS

1.1

Definitions
The following words and expressions shall have the meanings assigned to
them, except where the context otherwise requires:
1.1.1

Client means the person, firm, company or body named in


[Schedule 1] and none other, except its legal successors and
permitted assigns;

1.1.2

"Country" means the country named in [Schedule 1] where the


Project is located;

1.1. 3 Day means the period between any one midnight and the next,
and Month means a period of one month according to the
Gregorian calendar commencing with any day in the month;
1.1. 4 Document means written, drawn, typed, printed, magnetized or
photographic material which is capable of being copied;
1.1.5

Invitation means the invitation of the Client to a Member or


Members to submit a proposal for the provision of professional
engineering services for the Project;

1.1.6

Joint Venture means the joint venture formed between the


Members in accordance with this Agreement;

1.1.7

Joint Venture Agreement, hereinafter referred to as "this


Agreement", comprises the document entitled Conditions and
Terms together with Schedules 1 to 4 attached there to and such
other documents as may be specified in [Schedule 1] to form part
of this Agreement;

1.1.8

Leading Member means the member which will take the lead in
the management of the Joint Ventures affairs and which will
provide the Joint Ventures Representative for liaison with the
Client and, unless otherwise agreed by the Members, the Services
Manager for direction of the conduct of the Services;

1.1.9

"Members" means the individuals or firms which have agreed to


Joint Venture in connection with the Project;

1.1.10 Project means the undertaking or proposed or actual works


named in [Schedule 1] in connection with which the Client intends
or has commenced to proceed and requires professional services;
1.1.11 "Proposal" means the proposal to be prepared and submitted by
the Joint Venture in response to the Invitation;
1.1.12 "Services" means all the services to be performed by the Joint
Venture in accordance with the Proposal, any Terms of Reference
or the Services Agreement, as the case may be;
1.1.13 "Services Agreement" means the agreement between the Client
and the Joint Venture for the provision of professional services for
the Project; and
1.1.14 Works means the permanent works to be constructed, including
the goods and equipment to be supplied to the Client, for the
achievement of the Project;
1.2

Interpretation
1.2.1 Words importing the singular also include the plural and the
masculine includes the feminine and vice-versa where the context
requires.
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1.2.2 The headings in this Agreement shall not be taken into


consideration in its interpretation.
1.2.3 Unless otherwise stated, all references to clauses/sub-clauses are
references to clauses/sub-clauses numbered in the Conditions and
Terms of this Agreement and not to those in any other document
attached or incorporated by them.
2.

JOINT VENTURE

2.1

The Members hereby establish a joint venture being an unincorporated


association under the name of [name of joint venture] or such other name
as the Members shall unanimously agree from time to time (hereinafter
called the Joint Venture) for the purposes of:
-

preparing and submitting the Proposal to the Client [Remove if not


applicable];

providing any further information, the Client may require or negotiating


with the Client on any matters requiring negotiation in connection with
the Proposal;

entering into the Services Agreement with the Client, if the Proposal is
accepted; and

performing all the Services to be undertaken for the Project by the


Joint Venture under the Services Agreement.

2.2

The Members hereby appoint the Leading Member and, pursuant to SubClause 3.6, the representative of the Joint Venture, and confirm the
addresses of the Joint Venture and the addresses of the Members
respectively, as stated in [Schedule 1].

2.3

Unless otherwise agreed in writing by the Members, this Agreement shall


not terminate if a Member changes its name or is taken over by, or
merged with, another company or partnership provided that such
successor name, company or partnership is an independent professional
firm acceptable to the Client (such change to be notified to the Client and
his acceptance obtained).

3.

PROPOSAL SUBMISSION

3.1

The Members shall make all reasonable endeavours to obtain from the
Client the award of the Services in accordance with the conditions of the
Invitation or such conditions as may subsequently be agreed between the
Client and the Joint Venture.

3.2

The preparation and submission of the Proposal shall be undertaken


jointly by the Members. The Leading Member shall co-ordinate the
preparation of the Proposal and its submission to the Client. The Members
shall cooperate with the Leading Member. The Members shall perform
with all reasonable skill, care and diligence their respective functions as
allotted by the Policy Committee until the award of the Services to the
Joint Venture and signing of the Services Contract Agreement or until the
provisions of Sub-Clauses 16.1 and 16.3 have been satisfied.

3.3

Once the Proposal has been submitted to the Client no changes may be
made or additional information or explanations given without the consent
of all the Members until the Services Agreement is effective.

3.4

The Members shall enter into the Services Agreement, if it is awarded to


the Joint Venture, in accordance with the Proposal, or the Proposal as
amended, subsequent to its submission, by agreement between the Client
and the Joint Venture.

3.5

Upon the execution of this Agreement, each of the Members shall grant a
Power of Attorney in favour of a person nominated by it as its
Representative, as designated in [Schedule 1]. The Representatives of
each Member will constitute the Policy Committee of the Joint Venture.
Under the Power of Attorney granted to him, the Representative of a
Member shall thereby have authority to sign the Proposal and the
Services Agreement on behalf of and in the name of that Member. The
signature of its Representative shall bind each Member in respect of all
obligations and liabilities it assumes under this Agreement.

3.6

Subject to directions of the Policy Committee, the Representative of the


Leading Member shall be the representative of the Joint Venture for the
purpose of correspondence and discussion with the Client on matters
involving the interpretation of the Services Agreement and alterations to its
terms and to the Services to be performed.

4.

PERFORMANCE OF THE WORK

4.1

The work to be performed under the Services Agreement shall be carried


out in accordance with the terms and conditions of the Services
Agreement and this Agreement. In the event of any inconsistency between
the terms of the Services Agreement and this Agreement regarding the
performance of the work, the Services Agreement shall prevail, subject to
Sub-Clauses 4.3 and 4.4 below.

4.2

Each Member shall be responsible for fulfilling the obligations prescribed


in [Schedule 3] in accordance with the terms of the Services Agreement to
the satisfaction of the Client, subject to Sub-Clauses 4.3 and 4.4 below.
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4.3

The apportionment of the Joint Venture's obligations between the


Members in accordance with [Schedule 3] can be amended by agreement
between the Members, subject to the consent of the Client if required by
the Services Agreement.

4.4

Any alterations or additions to the Services to be carried out under the


Services Agreement shall be made only with the consent or on the
instructions of the Client in accordance with the Services Agreement.
Responsibility for carrying out additional obligations shall be as agreed
between the Members, subject to the consent of the Client if required by
the Services Agreement.

5.

LANGUAGE AND LAW

5.1

The following shall be stated in [Schedule 1]:


-

the language in which this Agreement shall be written and interpreted;


and

the country or state, the law of which shall apply to this Agreement.

6.

EXCLUSIVITY

6.1

Unless otherwise agreed by the Members, no Member shall engage in any


activity related to the Project, other than as a Member of the Joint Venture
and in accordance with the terms and conditions of this Agreement. Each
Member warrants that its subsidiaries and other firms or individuals over
which it has control will comply with this requirement.

7.

EXECUTIVE AUTHORITY

7.1

No Member shall have authority to bind or to make any commitment on


behalf of the Joint Venture or of any other Member unless such authority is
expressed in writing by the Members jointly in regard to the Joint Venture,
or by a Member individually in regard to the (other) Member.

7.2

From the date of this Agreement until the award of the Services
Agreement to the Joint Venture or until this Agreement shall terminate in
accordance with its terms, whichever is the earlier, the following matters
shall require the unanimous consent of the Members:
-

for the purpose of submitting the Proposal, the respective


responsibilities and obligations to be undertaken by the Members
10

under the Services Agreement, subject to the conditions of the


Invitation;
-

for the purpose of submitting the Proposal, the prices and terms and
conditions of payment comprised in the Proposal as applicable to the
Joint Venture generally, and to the Members separately, subject to the
conditions of the Invitation; and

any communication to, or response to communication from, the Client


either written or oral and any commitment of any kind to the Client or
any other party in connection with the Proposal.

7.3

From the date of the award of the Services Agreement to the Joint
Venture, decisions on the policies of the Joint Venture shall be vested in a
Policy Committee comprising the Representative of each of the Members
specified in accordance with Sub-Clause 3.5.

7.4

Each Member shall provide notice of its Representative on the Policy


Committee and shall give prior notice of any change in such appointment
(s), temporary or otherwise, as may occur from time to time.

7.5

The representative of the Leading Member on the Policy Committee shall


be the Chairman of the Committee. The Chairman shall ordinarily convene
the meetings of the Committee and may invite others whom he wishes to
attend, in order to inform or advise the Representatives, or to record the
proceedings of the Committee. The minimum frequency of Policy
Committee meetings shall be as mentioned in the [Schedule 1].

7.6

In the event of there being disagreement between members of the Policy


Committee on matters not otherwise prescribed in this Agreement the
Chairman shall be entitled to use a casting vote.

7.7

Meetings of the Policy Committee shall take place at least as frequently as


prescribed in [Schedule 1], unless otherwise agreed by the Members. A
Member may convene a meeting of the Committee at any time by giving at
least fourteen days notice in writing to the Members.

7.8

Minutes shall be kept, in the language named in [Schedule 1], of all


meetings of the Policy Committee and copies of all such minutes shall be
circulated to the Members.

7.9

The Members respectively agree to act (and agree that their respective
representatives on the Policy Committee shall act) at all times in the best
interests of the Joint Venture in taking any actions relating to the Project
and shall use all reasonable endeavours to settle any disputes arising
between them in connection with the Joint Venture.

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7.10

Each Member shall appoint a Local Representative in each locality where


that Member is to work. The Local Representative of a Member shall be
responsible for the obligations to be undertaken by it in the said locality
and for performance of its responsibilities in that locality under this
Agreement.

7.11

Each Member shall notify the other of its Local Representative and
responsibilities assigned to him and shall give prior notice of any change
in such appointment (s) or assignment (s) of responsibilities as may occur
from time to time.

7.12

A Services Manager shall be appointed. Unless otherwise agreed by the


Members, the Leading Member shall appoint him and will be entitled to
subsequently remove him from that position and appoint a replacement.

7.13

The Services Manager shall manage and supervise the performance of


the work under the Services Agreement in accordance with the directions
of the Policy Committee, and shall report to the Policy Committee on the
performance and progress of the work as and when required by that
Committee.

7. 14 The Local Representatives shall work under the direction of the Services
Manager.
8.

DOCUMENTS

8.1

All documents produced by a Member or the Members in connection with


the Project which are made available to persons other than the Members
shall bear the name of the Joint Venture.

8.2

All documents prepared by either of the Members in connection with the


performance of work under the Services Agreement, and which are
submitted to the Client or are to be made available to third parties, shall be
signed by the Services Manager, unless they concern the interpretation of
the Services Agreement or alteration to its terms or Services to be
performed.

8.3

Each Member shall have unrestricted access to any work carried out by
the Members in connection with the Project.

8.4

Copies of all documents submitted to the Client by or on behalf of the Joint


Venture by a Member shall be circulated to the Members as soon as
reasonably practicable following such submission.

8.5

During the period of this Agreement and after the termination of the
Agreement without limit in point of time, no Member shall disclose to any
12

person any information which it obtains through its participation in the


Joint Venture (and shall ensure that its employees shall observe such
restrictions) unless the said information:
-

becomes public knowledge;

must be disclosed for the proper performance of the Services; or

is published with the approval of the Joint Venture and, when required
under the Services Agreement, of the Client.

No Member shall utilize photographs, or other data describing the Project,


in promoting its own business, without the approval of the other
Member(s).
8.6

Except as may be otherwise provided under the Services Agreement, the


copyright in documents produced by a particular Member in connection
with the Project is granted to the Members and each Member hereby
licenses the Members to use and reproduce documents produced by it.

8.7

Except as provided in Sub-Clause 8.6, each Member shall indemnify the


Members against all claims, liabilities, damages, costs and expenses
sustained as a result of reusing the designs, drawings and other
documents produced for the Project on other projects.

9.

PERSONNEL

9.1

Each Member shall assign a sufficient number of its employees to the


Project so that the provisions of this Agreement are complied with and the
Services are carried out in accordance with the Services Agreement.
Unless specifically agreed otherwise, the Joint Venture shall have no
employees of its own.

9.2

Each Member shall be responsible for all actions of its staff and shall
continue to be responsible in all ways for its own obligations as employer
of its employees.

9.3

Notwithstanding the foregoing provisions of this Clause, each Member


may allow; any person, firm or corporation over which it exercises
management control; to fulfill any of the obligations for which it is
responsible under this Agreement provided that, in such circumstances,
the control of and responsibility for those obligations shall at all times
remain vested in the Member.

9.4

Each Member shall be entitled to invite, subject to the approval of the


Client (if required) and to the agreement of the Members, sub-consultants
to carry out any of that Members obligations, provided that in such
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circumstances the control of and responsibility for undertaking those


obligations shall at all times remain vested in the Member in question.
9.5

The engagement of sub-consultants by the Joint Venture shall be subject


to the provisions of Clause 7.

10.

ASSIGNMENT AND THIRD PARTIES

10.1

No Member shall sell, assign, mortgage, pledge, transfer or in any way


dispose of any rights or interests under this Agreement, or its interests in
any sums payable by the Client other than by a change in favour of its
bankers of any monies due or to become due under the Service
Agreement, without the prior written consent of the Members.

10.2

This Agreement is exclusively for the benefit of the Members and shall not
be construed as conferring, either directly or indirectly, any rights or
causes of action upon third parties.

11.

SEVERABILITY

11.1

If any part of any provision of this Agreement is found by an arbitrator or


Court or other competent authority to be void or unenforceable, such part
of the provision shall be deemed to be deleted from this Agreement and
the remainder of such provision and the remaining provisions of this
Agreement shall continue to be in full force and effect.

11.2

Notwithstanding the foregoing, the Members shall thereupon negotiate in


good faith in order to agree the terms of a mutually satisfactory provision
to be substituted for the part of the provision found to be void or
unenforceable.

12.

MEMBER IN DEFAULT

12.1

In the event of insolvency of a Member, the other Member [or remaining


Member (s) of rest of JV] is hereby irrevocably constituted and appointed
to act for it in all matters affecting performance of this Agreement.

12.2

A Member that delays or fails to fulfill its obligations in whole or in part


under this Agreement shall be deemed in default and shall indemnify the
other Member (s) in respect of the consequences.

12.3

A notice in writing from the Client that the performance of obligations


under the Services Agreement is unsatisfactory or that the continued
involvement of a Member is no longer required in whole or in part shall for
the purposes of this Clause mean that the Member concerned is in default
unless otherwise agreed by the other Member(s).
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12.4

If the default of a Member shall be such that the Member in question shall
be substantially in breach of its obligations hereunder, the other
Member(s) shall be entitled to reassign the work concerned.

12.5

Any actions taken by the other Member against the defaulting Member
pursuant to the preceding Sub-Clauses of hereof shall be without
prejudice to any rights to which he may be entitled at law against the
defaulting Member.

12.6

If a reassignment of work under the Services Agreement is made in


accordance with this Clause, the defaulting Member shall not obstruct the
Member who undertakes the reassigned work and shall provide him with
access to all documents and information necessary for its proper
performance.

12.7

Any sums received by the Joint Venture in payment for the defaulting
Members obligations already undertaken shall be used to compensate
any loss or damage resulting from the default of that Member. The
defaulting Member shall remain responsible for providing guarantees and
bonds relevant to the obligations allocated to that Member prior to such
reassignment until the completion of the Services.

12.8

If all of the defaulting Members obligations are reassigned in accordance


with this Clause, the other Member(s) shall be entitled to and shall:

12.9

carry on and complete the performance of the Services Agreement


without the participation of the defaulting Member, its successors,
receivers or other legal representatives and continue to act in
accordance with the terms of this Agreement (as amended to take
account of the non-participation of the defaulting Member); and

retain for the performance of the Services Agreement all equipment


and materials purchased therefor and all assets owned by the Joint
Venture at the time of the default by the defaulting Member until the
completion of the Services. The defaulting Member, its successors,
receivers or other legal representatives shall execute and do all deeds,
documents and things necessary to enable the said equipment and
materials to continue to be so used and to enable the Joint Venture to
continue without involvement of the defaulting Member.

Upon completion or earlier termination of the Services Agreement and


receipt of all amounts due thereunder, the remaining Member(s) shall
account to the Member in default which shall be entitled to receive an
amount equal to any sums provided by the defaulting Member towards
any general funds which shall not previously have been expended, plus
15

such Members share of any funds of the Joint Venture due to it, reduced
by any losses or damage occasioned by its default.
12.10 In the event that the share of the losses chargeable to the defaulting
Member exceeds any sums provided by the defaulting Member to any
general funds and the share of any funds of the Joint Venture due to it in
accordance with the terms of this Agreement, the defaulting Member shall
promptly pay the excess to the remaining Member(s).
13.

DURATION OF THE AGREEMENT

13.1

If it has been jointly established by the Members that the Proposal will not
be accepted by the Client or if it has not been accepted by the Client
within the period allowed for acceptance in accordance with the Proposal
or any extension of that period subsequently agreed between the Client
and the Joint Venture, this Agreement shall thereupon terminate forthwith.

13.2

If the Proposal is accepted by the Client, this Agreement shall continue to


have full force and effect and shall continue the same when the Services
Agreement is entered into with the Client, until confirmation has been
received from the Client that the Services have been completed, or the
Services Agreement has been terminated, and all accounts relating to the
Services between the Joint Venture, the Client and third parties and
between the Members are acknowledged as settled.

13.3

Provided that the terms of this Agreement shall nevertheless continue to


bind the Members to such extent and for so long as may be necessary to
give effect to the rights and obligations specified in the Agreement.

14.

LIABILITY

14.1

Each of the Members warrants that it will indemnify and keep indemnified
the other Member (s) against all legal liabilities arising out of or in
connection with the performance, or otherwise, of its obligations under this
Agreement.

14.2

In the event of it being alleged by one Member in writing that any legal
liability is attributable to the other Member or to the remaining Members,
the Members shall use reasonable endeavors to reach agreement on the
liabilities to be borne by each of the Members, and in the event of the
Members failing to so agree, a proper apportionment shall be determined
by arbitration in accordance with Clause 19.

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15.

INSURANCE

15.1

Unless otherwise agreed by the members, each Member individually shall


make all reasonable efforts to maintain insurance coverage in the
amounts stated in [Schedule 2] as protection against all legal liabilities
arising out of or in connection with the performance, or otherwise, of its
obligations under this Agreement.

15.2

Each Member shall make all reasonable efforts to maintain insurance


cover in the amounts stated in [Schedule 2] for public/third party liability
insurance and any other insurances necessary to comply with the
Services Agreement.

16.

PROMOTIONAL AND PROJECT COSTS, PROFITS, LOSSES AND


REMUNERATION

16.1

Each Member shall be reimbursed the costs and expenses incurred by it


in connection with the promotion, preparation, negotiation and submission
of the Proposal, as per actual expenses or as prescribed in [Schedule 4].

16.2

If [Schedule 4] does not prescribe the reimbursement of promotional costs


and expenses each Member shall bear the costs and expenses which it
incurs.

16.3

All payments to the Members shall be made in accordance with [Schedule


4] and the financial policy of the Joint Venture is as set out in that
Schedule.

17.

FINANCIAL ADMINISTRATION AND ACCOUNTING

17.1

Each Member shall be responsible for keeping its own account in respect
of payments due to it and for its own financial affairs generally. Each
Member shall be responsible for dealing with its own income tax affairs,
and its own social security affairs; where relevant, and for accounting
accordingly to the relevant authorities.

17.2

The Leading Member shall be responsible for provision of Financial


Administration Services as set out in [Schedule 2].

18.

GUARANTEES AND BONDS

18.1

Unless otherwise agreed by the Members, the Members severally shall


provide guarantees and bonds in proportion to their respective shares in
the Services sufficient for the total of guarantees and bonds required of
the Joint Venture by the Client. The Members severally shall be

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responsible for administration and extensions, if required, of the


guarantees and bonds they have provided.
19.

ARBITRATION

19.1

Any dispute arising in connection with this Agreement which cannot be


resolved by the Members in accordance with the terms of this Agreement
shall be settled by arbitration in accordance with the Rules stipulated in
[Schedule 1]. The Members agree to comply with the awards resulting
from arbitration and waive their rights to any form of appeal insofar as
such waiver can validly be made.

19.2

Judgment upon the award rendered in any arbitration proceedings may be


entered in any court having jurisdiction by any of the Members or
application may be made to such court for, a judicial acceptance of the
award and an order for enforcement (as the case may be).

20.

NOTICES

20.1

Notices under the Agreement shall be in writing and will take effect from
receipt at the address stated in [Schedule 1]. Delivery can be by hand or
facsimile message against a written confirmation of receipt or by
registered letter or courier.

20.2

The official address of the Joint Venture to be included on all


documentation signed in the name of the Joint Venture shall be as
designated in [Schedule 1] hereto or such other address as shall be
agreed from time to time by the Members, subject to the requirements of
the Services Agreement.

21.

SOLE AGREEMENT AND VARIATION

21.1

This Agreement is as specified in Sub-Clause 1.1.7 and is the sole


agreement between the Members and supersedes any previous
agreements between them relating to the matters referred to herein.
Variations and addenda may be made to this Agreement, including the
admission of new Members to the Joint Venture, by written instrument
which shall be effective upon being signed by all Members (or on their
behalf by their Representatives), provided that if a Member is considered
by the other Member(s) to be in default pursuant to Clause 12 his
agreement and signature is not required.

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IN WITNESS WHEREOF the Members hereto have executed this Agreement in


[state number of copies] identical counterparts each of which shall be deemed as
original.
1.

For and on behalf of


[Name of the Leading Member firm]
Name of
Authorized Representative: _______________

2.

3.

Designation:

_______________

Date :

________________

Seal:

_________________

For and on behalf of


[Name of the Member firm]
Name of
Authorized Representative

________________

Designation

________________

Date :

________________

Seal

________________

For and on behalf of


[Name of the Member firm]
Name of
Authorized Representative

________________

Designation

________________

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4.

5.

Date :

________________

Seal

________________

For and on behalf of


[Name of the Member firm]
Name of
Authorized Representative

________________

Designation

________________

Date :

________________

Seal

________________

For and on behalf of


[Name of Associate Member]
Name of
Authorized Representative

________________

Designation

________________

Date :

________________

Seal

________________

20

SCHEDULE

JOINT VENTURE AGREEMENT DATA SHEET


[Instructions are provided, as needed, in italics.]
Clause Reference

1.1.1

NAME AND ADDRESS OF THE CLIENT:


[Insert name and address of the Client.]

1.1.2

COUNTRY:
[Insert the name of Country where the project is located.]

1.1.10 PROJECT BRIEF:


[Insert project name and brief description.]
2.2, 3.5

LEAD MEMBER, REPRESENTATIVE OF JOINT VENTURE AND


MEMBERS OF JOINT VENTURE:
3.6& 20 [Insert the name and Address of Joint Venture]
[Insert the name and address of Lead Member.]
[Insert the name and address of Representative of Lead Member/ Joint
Venture.]
[Insert the names and addresses of all the JV Members.]
5.1

LANGUAGE AND LAW:


The joint Venture Agreement shall be written and interpreted in English Language
The Law of Islamic Republic of Pakistan shall apply to this Agreement.

7.5

MINIMUM FREQUENCY OF POLICY COMMITTEE MEETINGS:


[Insert the minimum frequency of Policy Committee Meetings keeping in view the
Project size and complexity.]
19.1 RULE OF ARBITRATION:
[Insert the rule of Arbitration which shall apply to the Joint Venture Agreement]

21

SCHEDULE

FINANCIAL POLICY
[Instructions are provided, as needed, in italics.]
Clause Reference

15

INSURANCES:

15.1

[Amounts to be inserted hereunder for each member to maintain the insurance


cover as protection against all legal liabilities arising out of or in connection with
the performance, or otherwise, of its obligations under this Agreement]
Name of Member

15.2

Amount against Insurance Coverage

-------------------------

---------------------------

-------------------------

---------------------------

-------------------------

---------------------------

-------------------------

---------------------------

-------------------------

---------------------------

[Amounts to be inserted hereunder for each member to maintain the insurance


cover for public/third party liability insurance and any other insurances
necessary to comply with the Services Agreement]
Name of Member

Amount against Insurance Coverage

-------------------------

---------------------------

-------------------------

---------------------------

-------------------------

---------------------------

-------------------------

---------------------------

-------------------------

--------------------------22

SCHEDULE
FINANCIAL POLICY
17.2

FINANCIAL ADMINISTRATION SERVICES:

[Financial Administration Services to be set out by the Leading Member]

23

SCHEDULE
OBLIGATION BETWEEN THE MEMBERS (AS PROVIDED IN
SCHEDULE 1)
[Instructions are provided, as needed, in italics.]
Clause Reference

A.

PERFORMANCE OF THE WORKS

Pre-Award Stage

[Describe the obligations of each Member for pre-award stage]


B.

Post -Award Stage

[Describe the obligations of each Member for post-award stage in accordance with the
terms of the Services Agreement to the satisfaction of the Client]

24

SCHEDULE

FINANCIALS

[Instructions are provided, as needed, in italics.]


Clause Reference

16. PROMOTIONAL AND PROJECT COSTS, PROFITS, LOSSES AND


REMUNERATIONS

A.

Pre-Award Stage

16.1
&
16.2

Estimated/Notional Expenses
[Insert estimated/notional expenses incurred for promotion and preparation of
proposal as hereunder]
Name of Member

Estimated/Notional Expenses

-------------------------

---------------------------

-------------------------

---------------------------

-------------------------

---------------------------

-------------------------

-----------------------------------------------------

B.

------------------------Post -Award Stage

16.3

Financial Policy of JV
[Financial policy of the Joint Venture to be as set out]

25

CONSORTIUM AGREEMENT
CONDITIONS AND TERMS
(To be executed on Rs.Stamp Paper)
THIS CONSORTIUM AGREEMENT (hereinafter called the "Agreement") is made
and entered into this .. day of the month of. 2010, by and
among:
1.

[Name of Leading Member] through Authorised Signatory [Name of


Authorised Person] having their principal place of business at [Address]
for and on behalf of [Name of Leading Member] (hereinafter called the
Consultant") of the ONE PART;

2.

[Name of Member] through Authorised Signatory [Name of Authorised


Person] having their principal place of business at [Address] in Pakistan
for and on behalf of [Name of Member] (hereinafter called the
Consultant") of the SECOND PART;

3.

[Name of Member] through Authorised Signatory [Name of Authorised


Person] having their principal place of business at [Address] in Pakistan
for and on behalf of [Name of Member] (hereinafter called the
Consultant") of the THIRD PART;

4.

[Name of Member] through Authorised Signatory [Name of Authorised


Person] having their principal place of business at [Address] in Pakistan
for and on behalf of [Name of Member] (hereinafter called the
Consultant") of the FOURTH PART;

5.

[so on as required]

All the above for the purpose of this Agreement hereinafter individually called the
Member and collectively called the Members
WHEREAS
(a)

[Name of Client] has desired to appoint [Name of the Consortium]


comprising above Members as the Consultants for providing engineering
services; herein after called the Services for [Name of the Project];
hereinafter called the Project; and

26

(b)

the Members have agreed to join hands in the form of a Consortium to


provide the professional engineering services for the said Project on the
terms and conditions as set forth in this Agreement ;

NOW THEREFORE, in consideration of the mutual covenants of the Members,


the sufficiency whereof is hereby acknowledged and other good valuable
considerations, the Members have agreed as follows:
1.

DEFINITIONS AND INTERPRETATIONS

1.1

Definitions

Capitalized terms used in this Agreement shall have their respective defined
meanings, and/or shall have the meanings specified in the Contract and the
Tender Document and subsequently signed Contract between Client and
Consultant, unless the context expressly or by necessary implication otherwise
requires.
1.1.1 Client means the person, firm, company or body named in [Schedule 1]
and none other, except its legal successors and permitted assigns;
1.1.2 Consortium means the Consortium formed between the Members in
accordance with this Agreement;
1.1.3 "Country" means the country named in [Schedule 1] where the Project is
located;
1.1.4 Day means the period between any one midnight and the next, and
Month means a period of one month according to the Gregorian calendar
commencing with any day in the month;
1.1.5 Document means written, drawn, typed, printed, magnetized or
photographic material which is capable of being copied;
1.1.6 Invitation means the invitation of the Client to a Member or Members to
submit a proposal for the provision of professional engineering services for
the Project;
1.1.7 Lead Member means the member which will take the lead in the
management of the Consortiums affairs.
1.1.8 "Members" means the individuals or firms which have agreed to form a
consortium in connection with the Project;

27

1.1.9 Project means the undertaking or proposed or actual works named in


[Schedule 1] in connection with which the Client intends or has
commenced to proceed and requires professional services;
1.1.10 "Proposal" means the proposal to be prepared and submitted by the
Consortium in response to the Invitation;
1.1.11 "Services" means all the services to be performed by the Consortium in
accordance with the Proposal, Terms of Reference or the Services
Contract, as the case may be;
1.1.12 "Services Contract" means the contract between the Client and the
Consortium for the provision of professional services for the Project; and
1.1.13 Works means the permanent works to be constructed, including the
goods and equipment to be supplied to the Client, for the achievement of
the Project;
1.2

Interpretation

1.2.1 For the purpose of this Agreement, where the context so requires, (i) the
singular shall be deemed to include the plural and vice-versa and (ii)
masculine gender shall be deemed to include the feminine gender and
vice-versa.
1.2.2 References to a person if any shall, where the context so admits, include
references to natural persons, partnership firms, companies, bodies
corporate and associations, whether incorporated or not or any other
organization or entity including any governmental or political subdivision,
ministry, department or agency thereof.
1.2.3 The headings and sub-headings are inserted for convenience only and
shall not affect the construction and interpretation of this Agreement.
1.2.4 References to the word include and including shall be construed
without limitation.
1.2.5 Any reference to day shall mean a reference to a calendar day.
2.

PURPOSE OF CONSORTIUM AGREEMENT

2.1

The purpose of this Agreement is to specify the responsibilities of the


Members towards the Client, supplement the provisions of the Contract
and the Tender Document concerning the Project and to set out further
28

rights and obligations of the Members supplementing but not conflicting


with those present in the Contract and the Tender Document.
3.

DURATION

3.1

This Agreement shall come into force and effect on as of the date of
Signing of this Agreement by the Members. Unless otherwise terminated
earlier, this Agreement shall remain effective until the complete discharge
of all obligations, concerning the carrying out of the Project, which have
been taken on by the Members. The duration of this Agreement may be
extended, by the written agreement of the Members, for such period as
deemed appropriate.

4.

COORDINATOR

4.1

The Members hereby understand and agree that there shall be a Lead
Member who shall be the point of contact for the purpose of the Project. It
is hereby agreed by the Members that for the purpose of the Agreement
M/s. [Name of the Lead Member] has been appointed as Lead Member.
The Lead Member shall be specifically authorised by the Members to
make representations and declarations on their behalf. However, it is
clarified that every Member of the Consortium shall be individually
responsible for a part of the Services for the Works as specified under
[Schedule 2] and jointly and severally liable for the successful completion
of the entire Project.

4.2

For the purpose of this Agreement, the Tender Document and the
Contract, the Lead Member shall be the single point of contact for the
Client, shall have the overall responsibility of the management of the
Project and shall have single point responsibility for ensuring that all
members of the consortium are complying with the terms and conditions
set out in this Agreement.

4.3

All instructions/communications from Client to the Lead Member shall be


deemed to have been duly provided to all the Members of the consortium.

4.4

For the avoidance of doubt it is hereby clarified that the all Members of the
consortium shall be held individually responsible for the obligations
mentioned in [Schedule 2] regarding their specific roles/responsibilities
undertaken by them under this Agreement.

5.

RIGHTS AND OBLIGATIONS

5.1

For delivery of all Services as per Contract with the Client, Lead Member
shall be primarily accountable and responsible.

29

5.2

The Lead Member shall be responsible for the transmission of any


documents and information connected with the Project to the Members
concerned.

5.3

It is hereby clarified that representations and declarations made by the


Lead Member shall be legally binding on all the Members of the
Agreement.

5.4

Each Member shall use reasonable efforts to perform and fulfill, promptly,
actively and on time, all of its obligations under this Agreement.

5.5

All commercial activities with the Client shall be conducted by the Lead
Member.

6.

RESPONSIBILITIES TOWARDS EACH OTHER

6.1

(a)

Each Member undertake:


(i) to promptly notify each of the Members about any significant
delay in fulfillment of milestones in relation to the Project; and
(ii) to inform other Members of relevant communications it receives
from third parties in relation to the Project.

(b)

Each Member shall use reasonable efforts to ensure the accuracy of


any information or materials it supplies hereunder or under this
Agreement and promptly act to correct any error therein as soon as it
came into the knowledge.

(c)

Each Member shall act in good faith. When a Member believes that
for carrying out the Project or use of knowledge from the Project it
might require access rights to another Members pre-existing knowhow or to another Member's knowledge and material which is not
from the Project, it shall obtain written permission from the Member
prior to the use of such material.

(d)

Each Member shall keep confidential all information of confidential


nature, whether written or oral, concerning to this Agreement and
also abide by the terms of confidentiality as described in Tender
Documents and shall also abide by all the clauses of the Tender
Documents.

(e) Each Member shall share with and disclose information to other
Members including confidential information and documents as may
be necessary for the Project. The Members hereby understand and

30

agree that the information shall be used solely for the purpose of the
Project and not for its own use or for any third party benefit.
7.

LIABILITIES

7.1

Liability towards each other:


The Members hereby understand and agree that each Member shall be
individually liable for any default with regard to the deliverables of his part
under the terms and conditions of the Contract [Schedule 2] and the
Tender Document.

7.2

Indemnification of a Member for each other:


Each Member shall indemnify each of the other Members, in respect of
liability resulting from acts or omissions of itself.

7.3

Liability towards Third Parties:


Subject always to such other undertakings and warranties as are provided
for in this Agreement and the Contract, each Member shall be solely liable
for any loss, damage or injury to third parties resulting from its carrying out
its parts of the Project and from its use of knowledge and/or know how.

8.

REPRESENTATION AND WARRANTIES

8.1

The Members hereby represent and warrant that:

(a)

They are duly organised and validly existing under the laws of Pakistan
and have full power and authority to enter into this Agreement and to
perform their obligations under this Agreement. The execution and validity
of this Agreement and the Consummation of the transactions
contemplated by this Agreement have been duly authorised by all
necessary action on the part of the Members.

(b)

This Agreement constitutes a valid and binding obligation of the Members,


enforceable against them in accordance with the terms hereof, and the
execution, delivery and performance of this Agreement and all instruments
or agreements required hereunder do not contravene, violate or constitute
a default of or require any consent or notice under any provision of any
agreement or other instrument to which the Member is a party and tender
document or by which the Members are or may be bound.

(c)

Each of the representations and warranties shall be construed as a


separate representation, warranty, covenant or undertaking, as the case

31

may be, and shall not be limited by the terms of any other representation
or warranty or by any other term of this Agreement.
(d)

The Members have read, understood and agreed with the terms and
conditions of this Agreement.

9.

NOTICES

9.1

Notices, demands or other communication required or permitted to be


given or made under this Agreement shall be in writing in English
language and will take effect from receipt at the address stated herein
below. Delivery can be made by hand or facsimile message against a
written confirmation of receipt or by registered letter or by courier
subsequently confirmed by letter.
If to the Member of the First Part
[Insert name]
[Insert address]
If to the Member of the Second Part
[Insert name]
[Insert address]
If to the Member of the Third Part
[Insert name]
[Insert address]
If to the Member of the Fourth Part
[Insert name]
[Insert address]

9.2

Any such notice, demand or communication shall, unless the contrary is


proved, be deemed to have been duly served at the time of delivery in the
case of service by delivery in person or by registered post or courier at the
given address.

10.

LANGUAGE AND LAW


The following shall be stated in [Schedule 1]:
(i)

The language in which this Agreement shall be written and


interpreted; and

32

(ii)

The country or state, the law of which shall apply to this Agreement.

11.

ARBITRATION

11.1

Any and all disputes or differences between the Members arising out of or
in connection with this Agreement or its performance shall, so far as it is
possible, be settled amicably through consultation between the Members.

11.2

Any dispute arising in connection with this Agreement which cannot be


resolved by the Members in accordance with the terms of this Agreement
shall be settled by arbitration in accordance with the Rules of Arbitration
Act 1940 of Pakistan. The Members agree to comply with the awards
resulting from arbitration and waive their rights to any form of appeal
insofar as such waiver can validly be made.

12.

MISCELLANEOUS

12.1

Each Member shall bear its own legal, accounting, professional and
advisory fees, commissions and other costs and expenses incurred by it in
connection with this Agreement and the transactions contemplated herein.

12.2

This Agreement supersedes all prior discussions and agreements


(whether oral or written, including all correspondence) if any, between the
Members with respect to the subject matter of this Agreement. In the event
of any conflict between the terms of this Agreement and the Contract and
the Tender Document, the terms of the Contract shall prevail.

12.3

Any provision of this Agreement, which is invalid or unenforceable, shall


be ineffective to the extent of such invalidity or unenforceability, without
affecting in any way the remaining provisions hereof.

12.4

This Agreement shall be governed and interpreted by, and construed in


accordance with the laws of Pakistan, without giving effect to the principles
of conflict of laws there under.

12.5

The Schedules shall have the same force and effect as if expressly set in
the body of this Agreement and any reference to this Agreement shall
include the Schedules.

12.6

No variation or modification to the terms of this Agreement shall be made


except by a written amendment signed by the Members.

33

IN WITNESS WHEREOF, the Members have entered into this Agreement the
day, month and year first above written.
1.

2.

3.

3.

For and on behalf of


________________________________________________
Name

__________________

Designation

__________________

Date

__________________

Seal

__________________

For and on behalf of


_________________________________________________
Name

__________________

Designation

___________________

Date

___________________

Seal

___________________

For and on behalf of


_________________________________________________
Name

___________________

Designation

__________________

Date

___________________

Seal

___________________

For and on behalf of


_________________________________________________
Name

___________________

Designation

___________________
34

Date

___________________

Seal

___________________

35

SCHEDULE

CONSORTIUM AGREEMENT DATA SHEET


[Instructions are provided, as needed, in italics.]
Clause Reference

1.1.1

NAME AND ADDRESS OF THE CLIENT:


[Insert name and address of the Client.]

1.1.3

COUNTRY:
[Insert the name of Country where the project is located.]

1.1.9

PROJECT BRIEF:
[Insert project name and brief description.]

9(i)

LANGUAGE AND LAW:


(i)

The joint Venture Agreement shall be written and interpreted in English


Language.

(ii)

The Law of Islamic Republic of Pakistan shall apply to this Agreement.

36

SCHEDULE
OBLIGATIONS OF EACH INDIVIDUAL MEMBER
[Instructions are provided, as needed, in italics.]
Clause Reference

4.1, 4.4
& 7.1 OBLIGATIONS OF EACH INDIVIDUAL MEMBER
[Describe obligations of each individual Member of the Consortium.]

37

MEMORANDUM OF UNDERSTANDING (General)


Between
.
And
.
For

[Mention brief description of Services to be provided]


This MEMORANDUM OF UNDERSTANDING (hereinafter called the MOU) is
made and entered into this ..day of the month of . 2010, by and
between:
1.

[Name & address of First/Leading Party], with its head office located at
[Address of office with city name] (hereinafter called [short
name/acronym]), which expression shall include its successors, legal
representatives and permitted assigns; and

2.

[Name & address of Second Party], with its head office located at
[Address of office with city name] (hereinafter called [short
name/acronym]), which expression shall include its successors, legal
representatives and permitted assigns.

(Both of above for the purpose of this MOU hereinafter individually called the
Party and collectively called the Parties)
NOW THEREFORE, the Parties agreed hereto and hereby define the general
understanding for their mutual collaboration before submitting the proposal and
after the acceptance of proposal by the Client, as follows:
1.

DEFINITIONS AND INTERPRETATION

1.1

Definitions
The following words and expressions shall have the meanings assigned to
them, except where the context otherwise requires:
1.1.1 Association means the understanding formed between the
Members in accordance with this MOU;
38

1.1.2 Client means the person, firm, company or body named as client
in the Joint Venture/Consortium Agreement and none other, except
its legal successors and permitted assigns;
1.1.3 Contract means the Contract between the Client and the Joint
Venture/Consortium for the provisions of professional services for
the Project;
1.1.4 "Country" means [State the name of the Country] where the
Project is located;
1.1.5 Invitation means the invitation of the Client to submit a proposal
for the provision of particular engineering services for the Project;
1.1.6 Joint Venture means the joint venture to be formed between the
Members for the Project;
1.1.7 Joint Venture Agreement means the formal agreement to be
entered between the Joint Venture Members, upon acceptance of
proposal for the Project;
In case of Consortium Agreement
1.1.6 Consortium means the consortium to be formed between the
Members for the Project;
1.1.7 "Consortium Agreement means the formal agreement to be
entered between the Consortium Members, upon acceptance of
proposal for the Project;
1.1.8 "Proposal" means the proposal to be prepared and submitted by
the Members in response to the Invitation, by the Client;
1.1.9 "Services" means all the services to be performed by the Members
in accordance with the Proposal or Contract, as the case may be;
1.1.10 Representative means the person nominated by the Members(s)
of the Joint Venture/Consortium through Power of Attorney to sign
the Proposal and the Contract on behalf of and in the name of that
Member. The signature of Representative shall bind each Member
in respect of all obligations and liabilities it assumes under the Joint
Venture/ Consortium Agreement.
1.1.11 Leading Member means the Member which will take the lead in
the management of the Associations affairs under this MOU and
which will provide the Associations Representative for liaison with
39

the Client and, unless otherwise agreed by the Members, the


Services Manager for direction of the conduct of the Services;
1.1.12 Day means the period between any one midnight and the next,
and month means a period of one month according to the
Gregorian calendar commencing with any day in the month; and
1.1.13 Document means written, drawn, typed, printed, magnetized or
photographic material which is capable of being copied.
1.2

Interpretation
1.2.1 Words importing the singular also include the plural and the
masculine includes the feminine and vice-versa where the context
requires.
1.2.2 The headings in this MOU shall not be taken into consideration in
its interpretation.
1.2.3 Unless otherwise stated, all references to clauses/sub-clauses are
references to clauses/sub-clauses numbered in the Conditions and
Terms of this MOU and not to those in any other document
attached or incorporated by them.

2.

Aim

2.1

Through this MOU, [short name of First Party] and [short name of Second
Party] declare their intention that following receipt of written order from the
Client, they shall both collaborate to carry out [Name of the Project (s)], in
accordance with the terms as agreed mutually under the Contract (s) to be
signed with the respective Client (s).

3.

Contractual Relationship

3.1

The contractual relationship between [short name of First Party] and [short
name of Second Party] shall be mutually agreed between them for the
specific project (s). It is neither the intention of the Parties to make nor
shall this MOU be construed as forming a corporation, partnership,
company or any other legal entity.

4.

Technical Cooperation

4.1

According to the requirements of jobs secured, as mutually agreed


between the Parties prior to carrying out [name of the Project (s)], [short
name of Second Party]s technical experts shall be available to provide
40

technical assistance to [short name of First Party] on various projects by


providing inputs as follows:

[Mode of inputs e.g. e-mail, fax, visit (s), etc]


..
..

Technical inputs and remunerations (in foreign currencies or other) for


services for the Project(s) shall be mutually agreed through a separate
joint venture/consortium agreement to be entered between the Parties.

5.

Responsibility

5.1

Both the Parties shall be responsible for the performance of their own
services agreed by the Parties with the Client and recorded in the contract
signed with the Client, as well as in the joint venture/consortium
agreement. Unless otherwise agreed by the Parties, [short name of
Second Party] shall carry out [Describe its services] as per requirements
of contract as part of its input. [short name of First Party] shall carryout
[Describe its services] as per requirements of Contract as Leading Party.

6.

Joint Venture/Consortium

6.1

Prior to preparing proposal for any project, the Parties shall agree in
writing the basis of preparing proposal for that project. Such basis shall
include but not limited to the division of scope of services, rights,
obligations and payments.

6.2

In case the proposal jointly submitted by the Parties is accepted by the


Client, the services shall be rendered jointly by the Parties in accordance
with a Joint Venture/Consortium Agreement to be signed by the Parties.
The Joint Venture/Consortium Agreement shall be signed prior to
commencing the services and shall be based upon the terms of the
contract signed between the Joint Venture/Consortium and the Client.

7.

Business Development Costs

7.1

Unless otherwise agreed in writing, each Party shall bear its own
business development costs in connection with preparation of its part of
proposal.

7.2

There will be no bar on any Party to collaborate, associate or form a joint


venture/consortium with any other party for projects other than those
undertaken by the Parties through this MOU.

41

8.

PROPOSAL SUBMISSION
8.1 The Members shall make all reasonable endeavours to obtain from
the Client the award of the Services Agreement in accordance with
the conditions of the Invitation.
8.2 The preparation and submission of the Proposal shall be undertaken
jointly by the Members. The Members shall be required to provide
their respective information and document on the required format to
the Leading Member. The Leading Member shall co-ordinate and
finalize the preparation of the Proposal and its submission to the
Client. The Members shall cooperate with the Leading Member. The
Members shall perform with all reasonable skill, care and diligence
their respective functions, as agreed between the Members, allotted
by the Policy Committee until the award of the Services Agreement to
the Joint Venture/Consortium or until the provisions of Sub-Clause
16.1 have been satisfied.
8.3 Once the Proposal has been submitted to the Client, no changes
may be made or additional information or explanations given without
the consent of all the Members until the Service Agreement is signed
and have become effective.
8.4 The Members shall enter into a formal Joint Venture/Consortium
Agreement, stipulating in detail the relations between the Members
on the basis of this MOU and enter into the Contract, if it is awarded
in accordance with the Proposal, or the Proposal as amended,
subsequent to its submission, by agreement between the Client and
the Joint Venture/Consortium.
8.5 Upon the execution of this MOU, each of the Members shall grant a
Power of Attorney in favour of a person nominated by it as its
Representative. Under the Power of Attorney granted to him, the
Representative of a Member shall thereby have authority to sign the
Proposal and the Services Agreement on behalf of and in the name
of that Member. The signature of its Representative shall bind each
Member in respect of all obligations and liabilities it assumes under
this MOU.
8.6 The Representative of the Leading Member shall be the
representative of the Association for the purpose of correspondence
and discussion with the Client on matters involving the interpretation
of the Proposal and alterations to it and to the Services to be
performed.

42

9.

10.

Performance of the Services


9.1

The Services shall be carried out by each Member in accordance


with the terms and conditions as set out in the MOU and the
Service Agreement. In the event of any inconsistency between the
terms of this MOU and the Service Agreement regarding
performance of the Services, the terms of Service Agreement shall
prevail.

9.2

Each Member shall be responsible for fulfilling the obligations in


accordance with the terms of Service Agreement.

9.3

The apportionment between the Members of MOU shall be


recorded and amended in the Joint Venture/Consortium Agreement.

9.4

Any alterations or additions to be carried out under the Service


Agreement shall be made only with the instruction or consent of the
Client. Responsibilities for carrying out additional obligations shall
be agreed between the Members, subject to the consent of the
Client, if required by the Service Agreement.

LANGUAGE AND LAW


10.1

11.

EXCLUSIVITY
11.1

12.

This MOU shall be written and interpreted in English Language and


the law which is to be applied to this MOU shall be the law of
Islamic Republic of Pakistan.

Unless otherwise agreed by the Members, no Member shall


engage in any activity related to the Services, unless otherwise
agreed by the Members, other than as a Member of this
Understanding and in accordance with the terms and conditions of
this MOU. Each Member warrants that its subsidiaries and other
firms or individuals over which it has control will comply with this
requirement.

EXECUTIVE AUTHORITY
12.1

No Member shall have authority to bind or to make any


commitment on behalf of any other Member unless such authority
is expressed in writing by the Members jointly, or by a Member
individually in regard to the (other) Member.

43

12.2

13.

(b)

for the purpose of submitting the Proposal, the prices and


terms and conditions of payment comprised in the Proposal
as applicable to the Members, subject to the conditions of
the Invitation; and

(c)

any communication to, or response to communication from,


the Client either written or oral and any commitment of any
kind to the Client or any other party in connection with the
Proposal.

Each Member shall be obliged to depute as much of their personnel


as are needed in timely accomplishment of the proposal for a
specific project and subsequently carrying out of the project. Unless
specifically agreed otherwise, under the arrangement of MOU, no
employee shall be considered on its strength.

No Member shall assign, sell, transfer or in any way encumber its


interest under this MOU, or its interests in any sums payable by the
Client, without first obtaining the consent in writing of other
Member.

Severability
15.1

16.

for the purpose of submitting the Proposal, the respective


responsibilities
and obligations to be undertaken by the
Members, subject to the conditions of the Invitation or TOR;

Assignment and Third Party


14.1

15.

(a)

Personnel
13.1

14.

From the date of this MOU until the award of the Services
Agreement or until this MOU shall terminate in accordance with its
terms, whichever is the earlier, the following matters shall require
the unanimous consent of the Members:

If any part of the provisions of this MOU is found in any way to be


void or not applicable, such part of the provisions shall be deemed
to be deleted and remainder provisions of MOU shall continue in
force and effect.

Member in Default
16.1

In the event of insolvency of a Member, the other Member hereby


irrevocably constituted and appointed attorney-in-fact for such

44

insolvent Member to act for it in all matters affecting performance of


the Service Agreement to be entered with the Client.
17.

18.

LIABILITY
17.1

Each of the Members warrants that it will indemnify and keep


indemnified the other Member against all legal liabilities arising out
of or in connection with the performance, or otherwise, of its
obligations under this MOU.

17.2

In the event of it being alleged by one Member in writing that any


legal liability is attributable to the other Member or to the Members,
the Members shall use reasonable endeavors to reach agreement
on the liabilities to be borne by each of the Members, and in the
event of the Members failing to so agree, a proper apportionment
shall be determined by resolution in accordance with Clause 19.

FINANCIAL ADMINISTRATION AND ACCOUNTING


18.1 Each Member shall be responsible for keeping its own account in
respect of payments due to it and for its own financial affairs
generally. Each Member shall be responsible for dealing with its own
income tax affairs, and its own social security affair: where relevant,
and for accounting accordingly to the relevant authorities.

20.

SOLE AGREEMENT AND VARIATION


20.1 This MOU is the sole understanding between the Members and
supersedes any previous understandings between them relating to
the matters referred to herein. Variations and addenda may be made
to this MOU, including the admission of new Member (s) to the
Association, by written instrument which shall be effective upon being
signed by all Members (or on their behalf by their Representatives),
provided that if a Member is considered by the other Member to be in
default pursuant to Clause 12 of this agreement and signature is not
required.

21.
21.1

Arbitration
Any dispute arising in connection with this MOU which cannot be
resolved by the Parties in accordance with the terms of this MOU shall be
settled amicably through negotiations, failing which the matter shall be
settled by arbitration in accordance with the Rules of Arbitration Act 1940
of Pakistan.
45

22.
22.1

23.

Effectiveness of MOU
This MOU shall be effective from the date of its signing by the Parties.
Unless otherwise terminated earlier, this MOU shall remain effective for
[Period of MOU], which shall be renewable on mutually agreed terms.
Should this MOU be terminated for any reason before the completion of
services under any contract with the Client, then the Parties shall be
bound to complete the services in accordance with the provisions of the
contract.

Confidentiality

23.1

All proprietary or confidential information relating to the Project(s)


including financial aspects of this collaboration between the Parties shall
not be passed on to any third party.

23.2

All documents and/or information forwarded by either Party to the other in


connection with the preparation of proposal shall remain sole and
exclusive property of the Party and shall be subject to the respective
intellectual property rights.

23.3

Upon expiration/termination of this MOU, each Party shall:


(i)

return to the other, all such documents and/or materials including


computer Diskettes/Flash drives and all copies thereof that are jointly
prepared by the Parties; and

(ii)

certify that all such documents and information and all copies have
been returned to such receiving Party.

24.

Notices

24.1

Notices under this MOU shall be in writing and will take effect from receipt
at the address as notified by each Party. Delivery can be made through
[Mode of delivery] against a written confirmation of receipt. Designation of
the authorized representative of each Party, their respective addresses
and other contacts are given herein below:
(a)

[Full Name & Address of First Party]


.
.
..

46

Fax:
E-mail:
Website:
(b)

[Full Name & Address of Second Party]


.
.
.
Fax:
E-mail:
Website

IN WITNESS WHEREOF, the Parties hereto have signed this MOU to be


executed in two identical counterparts, each of which shall be deemed as
original, as of the date, month and year first above written.
For and on behalf of
[Full name of the First Party]
(short name of First Party)

For and on behalf of


[Full name of the Second Party]
(short name of Second Party)

Signature:

___________________

Signature:

Name:

___________________

Name:

___________________

Designation:

___________________

Designation:

___________________

Seal:

___________________

Seal:

___________________

47

__________________

MEMORANDUM OF UNDERSTANDING
Between
[First Member]
And
[Second Member]
(For Providing / Rendering Particular Engineering Services)
THIS MEMORANDUM OF UNDERSTANDING (hereinafter called MOU) made
and entered into this . day of the month of 2010, by
and among:

[Name & complete address of First/Leading Member] (hereinafter called


[short name/acronym]), which expression shall include its successors,
legal representatives and permitted assigns;

[Name and complete address of Second Member] (hereinafter called the


[short name/acronym]), which expression shall include its successors,
legal representatives and permitted assigns;

(Both of the above for the purpose of this MOU shall hereinafter individually
called the Member and collectively called the Members)
WHEREAS,
(a)

[Name of the Client] represented by [Name of the person/officer]


(hereinafter called the Client) has invited through [Mention the title of
invitation] published in daily [Insert name of news paper] dated [Insert
date] to submit proposal for providing certain engineering services
(hereinafter called the Services) for [Name of the project] (hereinafter
called the Project);

(b)

the Members hereby intend to join hands to form an unincorporated


association for the sole purpose of, preparation and submission of joint
proposal as required to be submitted to the Client for carrying out the
Services for the Project. In case of acceptance of proposal by the Client,
the members shall perform the Services as shall be agreed through Joint
Venture/ Consortium [Use which is appropriate] Agreement and the
48

contract to be entered
Venture/Consortium.

between

the

Client

and

the

Joint

NOW, THEREFORE, the Members confirm their understanding (hereinafter


called the Association) as follows:
1.

DEFINITIONS AND INTERPRETATION

1.2

Definitions
The following words and expressions shall have the meanings assigned to
them, except where the context otherwise requires:
1.1.1 Association means the understanding formed between the
Members in accordance with this MOU;
1.1.2 Client means the person, firm, company or body named as client
in the Joint Venture/Consortium Agreement and none other, except
its legal successors and permitted assigns;
1.1.3 Contract means the Contract between the Client and the Joint
Venture/Consortium for the provisions of professional services for
the Project;
1.1.4 "Country" means [State the name of the Country] where the
Project is located;
1.1.5 Invitation means the invitation of the Client to submit a proposal
for the provision of particular engineering services for the Project;
1.1.6 Joint Venture means the joint venture to be formed between the
Members for the Project;
1.1.7 Joint Venture Agreement means the formal agreement to be
entered between the Joint Venture Members, upon acceptance of
proposal for the Project;

In case of Consortium Agreement


1.1.6 Consortium means the consortium to be formed between the
Members for the Project;

49

1.1.7 "Consortium Agreement means the formal agreement to be


entered between the Consortium Members, upon acceptance of
proposal for the Project;
1.1.8 "Proposal" means the proposal to be prepared and submitted by
the Members in response to the Invitation, by the Client;
1.1.9 "Services" means all the services to be performed by the Members
in accordance with the Proposal or Contract, as the case may be;
1.1.10 Representative means the person nominated by the Members(s)
of the Joint Venture/Consortium through Power of Attorney to sign
the Proposal and the Contract on behalf of and in the name of that
Member. The signature of Representative shall bind each Member
in respect of all obligations and liabilities it assumes under the Joint
Venture/ Consortium Agreement.
1.1.11 Leading Member means the Member which will take the lead in
the management of the Associations affairs under this MOU and
which will provide the Associations Representative for liaison with
the Client and, unless otherwise agreed by the Members, the
Services Manager for direction of the conduct of the Services;
1.1.12 Day means the period between any one midnight and the next,
and month means a period of one month according to the
Gregorian calendar commencing with any day in the month; and
1.1.13 Document means written, drawn, typed, printed, magnetized or
photographic material which is capable of being copied.
1.2

Interpretation
1.2.1 Words importing the singular also include the plural and the
masculine includes the feminine and vice-versa where the context
requires.
1.2.2 The headings in this MOU shall not be taken into consideration in
its interpretation.
1.2.3 Unless otherwise stated, all references to clauses/sub-clauses are
references to clauses/sub-clauses numbered in the Conditions and
Terms of this MOU and not to those in any other document
attached or incorporated by them.

50

2.

ASSOCIATION/UNDERSTANDING
2.1 The Members hereby intend to join hands to form an unincorporated
association for the purpose of:
- preparing and submitting the Proposal to the Client;
- providing any further information, the Client may require or negotiating
with the Client on any matters requiring negotiation in connection
with the Proposal;
-

Entering into a formal Joint Venture/Consortium Agreement,


stipulating in detail the relations between the Members on the basis
of this MOU and in accordance with the Services Agreement with the
Client, if the Proposal is accepted; the Services shall be rendered
jointly by the Members in accordance with a Joint
Venture/Consortium Agreement to be signed by the Members. The
Joint Venture/Consortium Agreement shall be signed prior to
commencing the Services and shall be based upon the terms of the
Contract signed between the Joint Venture/Consortium and the
Client; and

- performing all the Services to be undertaken for the project by the Joint
Venture/Consortium under the Services Agreement.
2.2 The Members hereby appoint the Leading Member and, pursuant to
Clause 3.6, the representative of the Association.
2.3 Unless otherwise agreed in writing by the Members, this MOU shall
not terminate if a Member changes its name or is taken over by, or
merged with, another company or partnership provided that such
successor name, company or partnership is an independent
professional firm acceptable to the Client.
3.

PROPOSAL SUBMISSION
3.1 The Members shall make all reasonable endeavours to obtain from
the Client the award of the Services Agreement in accordance with
the conditions of the Invitation.
3.2 The preparation and submission of the Proposal shall be undertaken
jointly by the Members. The Members shall be required to provide
their respective information and document on the required format to
the Leading Member. The Leading Member shall co-ordinate and
finalize the preparation of the Proposal and its submission to the
Client. The Members shall cooperate with the Leading Member. The
Members shall perform with all reasonable skill, care and diligence
their respective functions, as agreed between the Members, allotted
51

by the Policy Committee until the award of the Services Agreement to


the Joint Venture/Consortium or until the provisions of Sub-Clause
16.1 have been satisfied.
3.3 Once the Proposal has been submitted to the Client, no changes
may be made or additional information or explanations given without
the consent of all the Members until the Service Agreement is signed
and have become effective.
3.4 The Members shall enter into a formal Joint Venture/Consortium
Agreement, stipulating in detail the relations between the Members
on the basis of this MOU and enter into the Contract, if it is awarded
in accordance with the Proposal, or the Proposal as amended,
subsequent to its submission, by agreement between the Client and
the Joint Venture/Consortium.
3.5 Upon the execution of this MOU, each of the Members shall grant a
Power of Attorney in favour of a person nominated by it as its
Representative. Under the Power of Attorney granted to him, the
Representative of a Member shall thereby have authority to sign the
Proposal and the Services Agreement on behalf of and in the name
of that Member. The signature of its Representative shall bind each
Member in respect of all obligations and liabilities it assumes under
this MOU.
3.6 The Representative of the Leading Member shall be the
representative of the Association for the purpose of correspondence
and discussion with the Client on matters involving the interpretation
of the Proposal and alterations to it and to the Services to be
performed.
4. PERFORMANCE OF THE SERVICES
4.1

The Services shall be carried out by each Member in accordance


with the terms and conditions as set out in the MOU and the
Service Agreement. In the event of any inconsistency between the
terms of this MOU and the Service Agreement regarding
performance of the Services, the terms of Service Agreement shall
prevail.

4.2

Each Member shall be responsible for fulfilling the obligations in


accordance with the terms of Service Agreement.

4.3

The apportionment between the Members of MOU shall be


recorded and amended in the Joint Venture/Consortium Agreement.

52

4.4

5.

LANGUAGE AND LAW


5.1

6.

Any alterations or additions to be carried out under the Service


Agreement shall be made only with the instruction or consent of the
Client. Responsibilities for carrying out additional obligations shall
be agreed between the Members, subject to the consent of the
Client, if required by the Service Agreement.

This MOU shall be written and interpreted in English Language and


the law which is to be applied to this MOU shall be the law of
Islamic Republic of Pakistan.

EXCLUSIVITY
6.1 Unless otherwise agreed by the Members, no Member shall engage
in any activity related to the Services, unless otherwise agreed by the
Members, other than as a Member of this Understanding and in
accordance with the terms and conditions of this MOU. Each Member
warrants that its subsidiaries and other firms or individuals over which
it has control will comply with this requirement.

7.

EXECUTIVE AUTHORITY
7.1 No Member shall have authority to bind or to make any commitment
on behalf of any other Member unless such authority is expressed in
writing by the Members jointly, or by a Member individually in regard
to the (other) Member.
7.2 From the date of this MOU until the award of the Services Agreement
or until this MOU shall terminate in accordance with its terms,
whichever is the earlier, the following matters shall require the
unanimous consent of the Members:
(d)

for the purpose of submitting the Proposal, the respective


responsibilities
and obligations to be undertaken by the
Members, subject to the conditions of the Invitation or TOR;

(e)

for the purpose of submitting the Proposal, the prices and


terms and conditions of payment comprised in the Proposal
as applicable to the Members, subject to the conditions of
the Invitation; and

(f)

any communication to, or response to communication from,


the Client either written or oral and any commitment of any
53

kind to the Client or any other party in connection with the


Proposal.
8.

9.

DOCUMENTS
8.1

All documents and/or information forwarded by either Member to


the other for the preparation of Proposal shall remain sole and
exclusive property of the Member which provided the same
including the intellectual property rights.

8.2

Upon expiration/termination of MOU, each Member shall:

certify that all such documents and information and all


copies have been returned to such receiving Member.

Each Member shall be obliged to depute as much of their personnel


as are needed in timely accomplishment of the proposal for a
specific project and subsequently carrying out of the project. Unless
specifically agreed otherwise, under the arrangement of MOU, no
employee shall be considered on its strength.

No Member shall assign, sell, transfer or in any way encumber its


interest under this MOU, or its interests in any sums payable by the
Client, without first obtaining the consent in writing of other
Member.

SEVERABILITY
11.1

12.

(b)

ASSIGNMENT AND THIRD PARTY


10.1

11.

return to the other, all such documents and/or materials


including computer diskettes and all copies thereof that are
jointly prepared by the MOU Members; and

PERSONNEL
9.1

10.

(a)

If any part of the provisions of this MOU is found in any way to be


void or not applicable, such part of the provisions shall be deemed
to be deleted and remainder provisions of MOU shall continue in
force and effect.

MEMBER IN DEFAULT

54

12.1

13.

DURATION OF THE UNDERSTANDING


13.1
13.2

14.

15.

This MOU shall come into force and effect on the date of signing of
this MOU by the Members.
Unless otherwise terminated earlier, this MOU shall expire on the
date when;
(a)

the Proposal is not accepted by the Client; or

(b)

the Members entered into Joint Venture/Consortium


Agreement, following acceptance of Proposal by the Client.

LIABILITY
14.1

Each of the Members warrants that it will indemnify and keep


indemnified the other Member against all legal liabilities arising out
of or in connection with the performance, or otherwise, of its
obligations under this MOU.

14.2

In the event of it being alleged by one Member in writing that any


legal liability is attributable to the other Member or to the Members,
the Members shall use reasonable endeavors to reach agreement
on the liabilities to be borne by each of the Members, and in the
event of the Members failing to so agree, a proper apportionment
shall be determined by resolution in accordance with Clause 19.

PROMOTIONAL AND PROJECT COSTS, PROFITS/ LOSSES AND


REMUNERATION
15.1

16.

In the event of insolvency of a Member, the other Member hereby


irrevocably constituted and appointed attorney-in-fact for such
insolvent Member to act for it in all matters affecting performance of
the Service Agreement to be entered with the Client.

Each Member shall bear and pay all of its costs and expenses
incurred in connection with this MOU and all other activities
concerning job acquirement prior to the signing of Joint
Venture/Consortium Agreement except as otherwise agreed upon
in writing.

FINANCIAL ADMINISTRATION AND ACCOUNTING


16.1 Each Member shall be responsible for keeping its own account in
respect of payments due to it and for its own financial affairs
55

generally. Each Member shall be responsible for dealing with its own
income tax affairs, and its own social security affair: where relevant,
and for accounting accordingly to the relevant authorities.
17.

Dispute Resolution

17.1

Any dispute arising in connection with this MOU which cannot be resolved
by the Parties in accordance with the terms of this MOU shall be settled
amicably through negotiations, failing which the matter shall be referred to
Pakistan Engineering Council for seeking their advice.

19.

NOTICES
19.1 Notices under the MOU shall be in writing and will take effect from
receipt at the address stated of the each of Member. Delivery can be
by hand or facsimile message against a written confirmation of
receipt or by registered letter or courier.

20.

SOLE AGREEMENT AND VARIATION


20.1 This MOU is the sole understanding between the Members and
supersedes any previous understandings between them relating to
the matters referred to herein. Variations and addenda may be made
to this MOU, including the admission of new Member (s) to the
Association, by written instrument which shall be effective upon being
signed by all Members (or on their behalf by their Representatives),
provided that if a Member is considered by the other Member to be in
default pursuant to Clause 12 of this agreement and signature is not
required.

IN WITNESS WHEREOF the Members hereto have executed this MOU in [State
name of place] on the day, month and year first above written.
1.

Signed for and on behalf of


[Name of the Leading Member]

Signature

_______________________

Name:

_______________________

Designation:

_______________________

Date:

_______________________

56

Seal

2.

Signed for and on behalf of


[Name of the Member]

Signature

_______________________

Name:

_______________________

Designation:

_______________________

Date:

_______________________

57

Declaration (Letter) of Association for Consultancy Services


[On letter head of the member Consultant of the proposed Joint
Venture/Consortium]

, 2010
To:
[Name of the Lead Consultant/Member of JV/Consortium]
[Address]
[City]
Attn: [Name of the Proposal Coordinator]
Declaration of Association for Consultancy Services for ..
[Name of the Project for which proposal is to be submitted]

Dear Sir,
We, [Name of the Partner], the Partner to Joint Venture/Consortium [use
whichever is applicable] are pleased to confirm our association with lead firm M/s
[Name of the Lead Consultants], for providing engineering consultancy services
for the captioned project.
We look forward to work together for the successful completion of the project in
case we are awarded the subject assignment.
For and on behalf of [Name of the Partner]

________________________
[Name and Designation of the signatory of the Partner]

58

NON-DISCLOSURE AGREEMENT
THIS MUTUAL NON-DISCLOSURE AGREEMENT (hereinafter called the
Agreement) is made and entered into this [Day] of the month of [Month] 2010,
by and between:
[Name of the first Party] with its head office located at [Address of the first Party]
(hereinafter called the [Short Name or Acronym]), on the one hand
And
[Name of the second Party] with its head office located at [Address of the
second Party] (hereinafter called [Short Name or Acronym]), on the other hand.
[Name of the first Party] and [Name of the second Partner] are each a disclosing
Party (hereinafter called Discloser) and a receiving party (hereinafter called
Recipient) under this Agreement.
Both the above for the purpose of this Agreement hereinafter collectively called
the Parties and individually called the Party.
WHEREAS
(a)

in connection with exploring and evaluating a possible business


relationship in the field of [Mention business purpose], and for the purpose
of conducting any ongoing relationship, the Parties recognize the need to
disclose to one another certain of their Confidential Information (as
defined below); and

(b)

the Parties agree on the terms and conditions, upon which one Party will
disclose such Confidential Information to the other Party.

NOW, THEREFORE, the Parties hereby agree as follows:


1.

Confidential Information is defined as any and all information consistent


with the purpose described below that is (i) disclosed under this
Agreement in oral, written, graphic, machine recognizable, and/or sample
form, being clearly designated, labeled or marked as confidential or its
equivalent or (ii) obtained by examination, testing or analysis of any
hardware, software or any component part thereof provided by Discloser
to Recipient. Confidential Information that is disclosed orally shall be
identified as confidential at the time of disclosure and confirmed by the
Discloser by submitting a written document to the Recipient within [Insert
number of days] days after such disclosure. The written document shall
59

contain a summary of the Confidential Information and shall be labeled or


marked as confidential or its equivalent. CONFIDENTIAL INFORMATION
IS DISCLOSED FOR EVALUATION ONLY. The purpose of this evaluation
is to enable the parties to pursue exploratory discussions concerning a
possible collaboration between them in relation to a potential business
relationship and in connection with this purpose. Both Parties may
disclose to each other certain confidential technical and business
information which Discloser desires Recipient to treat as confidential
(hereinafter called the Purpose).
2.

The Recipient is not obliged to maintain as confidential, Confidential


Information that Recipient can demonstrate by documentation (i) is now
available or becomes available to the public without breach of this
Agreement; (ii) is explicitly approved for release by written authorization of
Discloser; (iii) is lawfully obtained from a third party or parties without a
duty of confidentiality; (iv) is disclosed to a third party by the Discloser
without a duty of confidentiality; (v) is known to Recipient prior to such
disclosure; (vi) is independently developed by Recipient without the use of
any of Disclosers Confidential Information or any breach of this
Agreement; or (vii) is required to be disclosed by a valid court order
provided that Recipient has first given Discloser reasonable written notice
of such requirement and fully cooperates with Discloser in seeking
confidential treatment for any such disclosure.

3.

The Parties agree that during the term of this Agreement and for a period
of 3 years from the expiration or termination of this Agreement, Recipient
shall (i) not disclose Confidential Information to any third party; (ii) restrict
disclosure of Confidential Information to only those employees, agents or
consultants who must be directly involved with the Confidential Information
for the evaluation Purpose as set forth in paragraph 1 above and who are
bound by confidentiality terms substantially similar to those in this
Agreement; (iii) not reverse engineer, de-compile or disassemble any
Confidential Information; (iv) use the same degree of care as for its own
information of like importance, but at least use reasonable care, in
safeguarding against disclosure of Confidential Information; and (v)
promptly notify Discloser upon discovery of any unauthorized use or
disclosure of the Confidential Information and take reasonable steps to
regain possession of the Confidential Information and prevent further
unauthorized actions or other breach of this Agreement.

4.

The Parties agree that all Confidential Information disclosed hereunder


shall remain the property of the Discloser and shall not be copied or
reproduced without the express written permission of the Discloser, except
for such copies as may be absolutely necessary in order to perform the
evaluation contemplated hereunder. Upon expiration or termination of this
Agreement, or within [Insert number of days] days of receipt of Disclosers
60

written request, Recipient shall return all Confidential Information to


Discloser along with all copies and portions thereof; or certify in writing
that all such Confidential Information has been destroyed. However,
Recipient may retain one copy of the Confidential Information which it may
use only in case of a dispute concerning this Agreement. No license,
express or implied, in the Confidential Information is granted other than to
use the Confidential Information in the manner and to the extent
authorized by this Agreement. All Confidential Information disclosed
hereunder is provided by Discloser without representation or warranty of
any kind.
5.

This Agreement shall become effective on the date of signing of this


Agreement by the Parties and shall be valid for an initial period of two (2)
years from the effective date. Either Party may terminate this Agreement
for any reason by giving [Insert number of days] days written notice to the
other party. Recipients obligations regarding Confidential Information as
stated in paragraph 3 shall survive the expiration or termination of this
Agreement.

6.

This Agreement is the entire agreement between the Parties with respect
to the subject matter contained herein and supersedes all prior or
contemporaneous oral or written agreements concerning this subject
matter. This Agreement may only be modified in writing by the Parties,
which shall be signed by the Parties. Any understanding between the
Parties beyond the Purpose of this Agreement shall be set forth in a
separate written agreement containing appropriate terms and conditions.

This Agreement shall be governed by and construed in accordance with the


applicable laws of Islamic Republic of Pakistan.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
signed in their respective names in two identical counterparts, each of which
shall be deemed as the original, as of the day, month and year first above written.
For and on behalf of

For and on behalf of

[Name of the first Party]

[Name of the second Party]

Signatures ..

Signatures .

Name

Name

..

Title

Title

Seal

Seal
61

62